Workforce Ecosystem Orchestration: A Strategic Framework

As organizations increasingly rely on contributors beyond their own employees, the once simple question of who (or what) is doing the work now has far-reaching implications for management practices, leadership approaches, and what it means to be a socially responsible business.

Our research shows, for example, that corporate diversity, equity, and inclusion practices (and goals) are typically internally focused and do not encompass external contributors. And yet more than 90% of respondents to our global executive survey agree that their workforce includes external contributors. Many organizations rely on external contributors to perform at least 30% of the work, yet accessing and engaging with talent is often siloed, fragmented, and uncoordinated across internal and external contributors. We have seen organization after organization realize, belatedly, that their dependence on external workers was creating inefficiencies and missed strategic opportunities.

Taking a workforce ecosystems perspective — which we detail below — helps leaders think more broadly and holistically about their workforce. This approach recognizes that the composition and boundaries of the workforce have changed; long- and short-term contractors, gig workers, partners, and technologies can all be part of a workforce. Workforce ecosystems embrace the idea that contributions to performance outcomes, irrespective of employment status, determine whether a person, partner, or technology is part of an organization’s overall workforce.

New functional relationships and leadership approaches are often necessary to effectively orchestrate workforce ecosystems. It is common for procurement, IT, marketing, a business unit, or another group to contract with external contributors while HR ensures that employees have the appropriate skills and recognition opportunities. In effective workforce ecosystems, these groups are more likely to be working together to supply both internal and external workers; develop diverse, inclusive, and equitable cultures; measure worker productivity; and create accessible learning and development opportunities.

Virtually all of the leaders we have interviewed agree that leading teams that include external contributors who may have more autonomy and flexibility than employees is both a challenge and an opportunity.